Vietnam and Myanmar

Vietnam and Myanmar

-combined population of 150 million, economic expansion 6 percent annually

-Vietnam has the fastest growing MAC in the region

-both countries have valuable resources .offshore oil in Vietnam, mineral, gems in Myanmar

-In these countries, consumers are the most optimistic in the world. They expect to live better than their parents and expect their children to live better than themselves

-Consumer in both countries are rapidly acquiring purchasing power , MAC is growing faster than any other countries in SEA

Vietnam

-Vietnam economy is well balanced, with export and investment driving growth. The growth of tech components and equipment help export and investment to grow faster than others

-Stable communist country

-Inflation and corruption remain persistent challenges to companies

-Banking crisis has shaken consumer confidence and contracted credit. Banks liberally loaned money to state-owned enterprises and other companies, many of those loan gone bad. When gov tightened credit, bankrupcies increase and GDP slowed.

-By 2020, Vietnam MAC population will be 2/3 of Thailand MAC

-The wealth is well distributed, rural area are growing faster than in urban area.Gov encouraged income growth through land allocation, trade and investment policies.

Attractiveness of Vietnam

-consumer economy –MAC is increasing , it has achieved a level of well-being, internet use is high

-foreign investment and export growth

      - growing very fast, top export segment from direct investment are telecommunication devices, textile

      -Vietnam labor force is well educated, and the labor is also cheap when compared with indo, malay, china

-room for improvement in productivity –manufacturing, wholesale, and retail, infrastructure is still poor, and economy is still substantially agarian

Vietnam consumers

-Vietnam are the most family oriented in Asia, they never spend money on themselves before the family’s needs are met

-Many of them feel financially secure and want to make more purchase than they did the year before, they are willing to borrow to buy essential item and borrow even for luxury item

-Do not fully understand the benefit of banking product, only 5 percent own credit card